Principles of Management
Chapter 2
Very Short Answer Type:
1. What makes principles of management flexible?
Ans: Flexibility comes from:
*General guidelines, not rigid formulas: Adaptable to specific situations and contexts.
*Multiple tools in a toolbox: Managers choose the right "tool" (principle) for the job.
*Emphasis on human behavior: Accounts for individual and cultural differences.
2. State the main objective of time study.
Ans: The main objective of time study is to determine the standard time required to complete a specific task or job. This standard time is then used to set production quotas, labor costs, and work schedules.
Here are some other important objectives of time study:
*To identify and eliminate unnecessary work elements.
*To improve work methods and procedures.
*To establish fair and equitable wage rates.
*To motivate employees to increase their productivity.
3. Name the principle that is an extension of the ‘harmony, not discord’.
Ans: The principle that extends from "harmony, not discord" in Frederick Winslow Taylor's Scientific Management is "Cooperation, not individualism."
This principle emphasizes that both management and workers should work together towards achieving common goals, rather than focusing on their own individual interests. It builds upon the idea of harmony by advocating for collaboration and mutual understanding as the key to success.
While "harmony, not discord" focuses on promoting peaceful relations between management and workers, "cooperation, not individualism" takes it a step further by actively encouraging collaborative efforts through shared objectives and joint problem-solving.
4. State any two causes of fatigue that may create hindrance in the employee’s performance.
Ans: Two causes of fatigue that can hinder employee performance include:
Long working hours: Excessive work hours, beyond optimal levels, can lead to physical and mental exhaustion, impacting focus, motivation, and productivity.
Stressful work environment: Unresolved conflict, high pressure, and lack of job control can contribute to psychological fatigue, hindering emotional well-being and impacting decision-making and engagement.
5. SanakLal and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. Name the principle of management followed by Wales Limited.
Ans: The principle of management followed by Wales Limited in regards to SanakLal and Gagan is stability of personnel.
This principle emphasizes the importance of investing in employees and retaining them for the long term. Here's why it applies in this case:
*Rigorous recruitment process: This suggests Wales Limited wants high-quality employees and is willing to invest time and resources in finding them.
*Lack of prior experience: Giving them a year to prove themselves indicates a commitment to developing their skills and knowledge rather than expecting immediate results.
*One-year period: This timeframe provides stability and security for SanakLal and Gagan, allowing them to learn and adapt without the pressure of immediate performance expectations.
6. Which technique is used by Taylor for distinguishing efficient and inefficient workers?
Ans: The technique used by Taylor for distinguishing efficient and inefficient workers was the Differential Piece Wage System.
This system awarded higher wages to workers who exceeded a pre-determined standard time for completing a task, while those who took longer received lower wages. This incentivized efficiency and discouraged slower work practices.
Short Answer Type:
1. How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.
Ans: The principle of unity of command states that an employee should receive instructions and orders from only one superior. This principle offers several benefits to management, including:
Increased clarity and efficiency:
*Having one boss prevents conflicting instructions and confusion, allowing employees to focus on their tasks without worrying about mixed messages. This leads to greater efficiency and avoids wasted time and effort.
Improved accountability:
*When employees know who they are accountable to, they are more likely to take ownership of their work and deliver results. This clarifies responsibility and facilitates performance evaluations and feedback.
Strengthened lines of authority:
*A clear chain of command helps maintain order and discipline within the organization. Employees understand who has decision-making power and to whom they should report issues or concerns.
Enhanced communication and relationships:
*By limiting the number of superiors an employee interacts with, communication channels become more streamlined and direct. This fosters stronger working relationships and improves communication flow within the team.
Reduced stress and frustration:
*Dealing with multiple bosses can be stressful and frustrating for employees. Unity of command minimizes this and creates a calmer, more positive work environment, potentially boosting employee morale and satisfaction.
2. Define scientific management. State any three of its principles.
Ans: Scientific Management, developed by Frederick Winslow Taylor, is a systematic approach to managing work practices based on applying scientific methods to analyze and improve efficiency. It emphasizes replacing traditional rule-of-thumb methods with objective observations, data analysis, and experimentation to optimize workflows and worker productivity.
Three key principles of Scientific Management include:
1. Science, Not Rule of Thumb: Replacing guesswork and subjective judgments with systematic analysis and experimentation to determine the most efficient methods for completing tasks.
2. Mental Planning, Not Rule of Thumb: Shifting responsibility for planning and designing work processes from individual workers to management, ensuring tasks are optimized for productivity and worker well-being.
3. Harmony, Not Discord: Fostering cooperation and collaboration between management and workers, replacing adversarial relationships with mutual understanding and shared goals.
These principles focus on establishing systematic, data-driven approaches to improve efficiency, productivity, and worker satisfaction. Additionally, scientific management incorporates other principles like specialization, standardization, and training to further optimize work activities.
Scientific Management, while influential in its time, has faced criticism for its emphasis on worker control and potential neglect of human factors. However, its core principles of using objective data and analysis to design efficient work processes remain relevant and influential in modern management practices.
3. If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it?
Ans: An organization that fails to provide the right place for physical and human resources in the organization likely violates two key principles of management:
1. Division of Labor: This principle advocates for dividing tasks among workers based on their skills and abilities, maximizing efficiency and output. Failing to provide the right physical space for each task can hinder this optimization. For example, cramped or poorly ventilated environments can negatively impact worker performance and well-being.
2. Placement: This principle emphasizes placing the right person in the right job and the right resources in the right location. When an organization doesn't provide suitable physical and human resources placement, it can lead to several consequences:
*Decreased productivity: Improper workspace or resource allocation can hinder workflow, create bottlenecks, and disrupt collaboration.
*Employee dissatisfaction: Inadequate work environments can demotivate employees, leading to lower morale, increased absenteeism, and potential talent drain.
*Safety hazards: Improper resource placement can create safety risks, resulting in accidents and injuries.
*Operational inefficiencies: Poor layout of resources can lengthen production times, increase error rates, and raise operational costs.
*Customer dissatisfaction: Inefficient processes and resource allocation can lead to delays, errors, and poor customer service experiences.
Therefore, ensuring the right physical and human resource placement is crucial for maximizing organizational efficiency, employee well-being, and customer satisfaction. By carefully considering these factors and creating an optimal working environment, organizations can significantly improve their overall performance and achieve their goals.
Here are some additional tips for organizations to follow:
*Conduct workplace assessments: Analyze current space, resource allocation, and workflow to identify potential improvements.
*Involve employees: Gather feedback from employees about their workspace needs and suggestions for improvement.
*Invest in ergonomics: Design comfortable and safe workspaces with equipment adapted to employees' needs.
*Use technology effectively: Utilize technology to automate tasks, streamline processes, and improve resource allocation.
*Promote a culture of continuous improvement: Encourage ongoing evaluation and adaptation of workspace and resource management to respond to evolving needs.
4. Explain any four points regarding significance of principles of management.
Ans: Here are four points regarding the significance of principles of management:
1. Provide structure and guidance:
*Management principles act as a foundation, offering a framework for planning, organizing, leading, and controlling organizational activities.
*They establish guiding principles for decision-making, ensuring consistency and avoiding haphazard approaches.
*This structure simplifies complex tasks and provides a baseline for managers at all levels to operate effectively.
2. Enhance efficiency and productivity:
*By promoting well-defined processes, optimal resource allocation, and clear lines of authority, management principles help improve operational efficiency.
*They encourage the elimination of waste, duplication of effort, and unnecessary procedures, leading to increased productivity and output.
*This benefits both the organization (through cost reduction and higher profits) and employees (through smoother workflows and reduced workload).
3. Foster better decision-making:
*Management principles equip managers with a set of tools and frameworks for analyzing situations, evaluating options, and making informed decisions.
*By considering factors like employee motivation, team dynamics, and resource constraints, they encourage a holistic approach to decision-making, reducing the risk of errors and promoting long-term success.
*This leads to more strategic and sustainable decisions that align with organizational goals.
4. Create a positive work environment:
*When applied effectively, management principles can contribute to a positive and productive work environment.
*Principles like fair compensation, effective communication, and employee empowerment foster trust, respect, and a sense of belonging among employees.
*This can lead to increased employee satisfaction, motivation, and engagement, ultimately benefiting both individual well-being and organizational performance.
5. Explain the principle of ‘Scalar Chain’ and gang plank.
Ans: The principle of Scalar Chain and Gang Plank are interrelated concepts in management that deal with communication and authority relationships within an organization.
Scalar Chain:
*Imagine a chain of command ascending from the lowest-level employees to the highest level of management. This is the scalar chain.
*It defines the formal lines of authority, outlining who reports to whom and through whom information flows.
*Following the scalar chain ensures order and clarity in communication, preventing confusion and conflicting instructions.
Gang Plank:
*While the scalar chain provides a structured communication pathway, situations may arise where direct interaction between individuals at different levels might be necessary and more efficient.
*This is where the concept of Gang Plank comes in. It allows for temporary deviation from the strict scalar chain, enabling direct communication between individuals who are not directly linked in the chain of command.
*Imagine a dotted line bridging two levels on the scalar chain. This dotted line represents the "gang plank."
Benefits of Gang Plank:
*Faster communication and problem-solving: When issues require immediate attention and consultation between individuals at different levels, the gang plank facilitates quicker information exchange and decision-making.
*Improved collaboration: Direct communication can foster cross-functional collaboration and knowledge sharing, leading to more innovative solutions and efficient task completion.
*Increased employee engagement: Empowering employees to engage in direct communication with higher levels can boost their morale and sense of ownership.
Important points to consider:
*Gang plank should be used sparingly and not bypass the scalar chain completely. Excessive use can undermine authority and cause confusion.
*Clear guidelines and approval processes should be established for utilizing the gang plank to ensure accountability and avoid misuse.
*Effective communication and transparency are crucial when using the gang plank to inform those within the direct line of command about the communication happening outside it.
Overall, the principles of Scalar Chain and Gang Plank offer a balance between maintaining a structured flow of information and adapting to the dynamic needs of an organization. They provide a framework for efficient communication and collaboration, ultimately contributing to improved organizational performance.
6. A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the order. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle?
Ans: Mr. Rathore violated the principle of subordination of individual interest to general interest in this scenario. This principle emphasizes that the decisions and actions of individuals within an organization, including managers like Mr. Rathore, should always prioritize the overall success and well-being of the organization above any personal gains or biases.
In this case, by opting for his cousin's offer at a higher price despite a better deal from the established supplier, Mr. Rathore prioritized his personal connection (loyalty to his cousin) over the financial benefit of the company. This act can have several negative consequences, including:
*Increased costs: Paying a higher price for raw materials directly impacts the company's profitability and competitiveness.
*Loss of trust and reputation: Such unethical behavior can damage the company's image and erode trust among stakeholders.
*Demotivation for employees: When employees witness such actions, it can demotivate them and raise concerns about fairness and transparency within the organization.
Conversely, adhering to the principle of subordinating individual interest to general interest can bring numerous positive impacts:
*Improved financial performance: Making decisions based on the best interests of the company can lead to cost savings, better deals, and ultimately, increased profitability.
*Enhanced corporate reputation: Ethical conduct fosters trust and respect from stakeholders, including customers, investors, and employees.
*Stronger employee morale and engagement: When employees see management prioritize the good of the company, it can boost their morale and commitment to their work.
*Sustainable growth: Building a culture of ethical decision-making lays the foundation for long-term, sustainable growth and success.
Therefore, by adhering to the principle of subordinating individual interest to general interest, Mr. Rathore could have ensured a more beneficial outcome for the company. This highlights the importance of ethical behavior and sound decision-making in management for achieving organizational success.
Long Answer Type/ Essay Type:
1. Explain the Principles of Scientific management given by Taylor.
Ans: Principles of Scientific Management by Frederick Winslow Taylor:
Frederick Winslow Taylor, a pioneer in the field of management, developed Scientific Management, a systematic approach to work processes emphasizing efficiency and productivity. This approach relied on five key principles:
1. Science, Not Rule of Thumb:
*Replace traditional, subjective methods with objective observations, data analysis, and experimentation to determine the most efficient ways to perform tasks.
*This involves analyzing every aspect of a job, from tools and materials to worker movements, to identify areas for improvement.
2. Harmony, Not Discord:
*Promote cooperation and collaboration between management and workers.
*Foster mutual understanding and shared goals to create a positive work environment and enhance overall efficiency.
3. Mental Planning, Not Rule of Thumb:
*Shift responsibility for planning and designing workflows from individual workers to management.
*This allows for standardized, optimized processes that maximize efficiency and minimize wasted effort.
4. Division of Labor and Specialization:
*Assign tasks to workers based on their skills, abilities, and experience.
*This allows for specialization and expertise, improving quality and efficiency.
5. Development of Each and Every Person to His Greatest Efficiency and Prosperity:
*Invest in training and development to improve worker skills and knowledge.
*This empowers employees, enhances job satisfaction, and ultimately leads to greater productivity.
Additional Elements:
*Standardization of tools and equipment: Ensures consistency and quality in workmanship.
*Functional foremanship: Divides supervisory responsibilities among specialists for different aspects of work.
*Cost accounting systems: Tracks costs associated with different tasks and processes to identify areas for cost reduction.
While criticized for its focus on worker control and potential neglect of human factors, Scientific Management laid the foundation for modern management practices. Its principles of using data, optimizing processes, and investing in employees remain relevant and influential in various organizational settings.
2. Explain the following Principles of management given by Fayol with examples:
a. Unity of direction
b. Equity
c. Espirit de corps
d. Order
e. Centralisation and decentralisation
f. Initiative
2. Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.
3. Discuss the following techniques of Scientific Work Study:
a. Time Study
b. Motion Study
c. Fatigue Study
d. Method Study
e. Simplification and standardisation of work
4. Discuss the differences between the contributions of Taylor and Fayol.
Ans: Both Frederick Winslow Taylor (Scientific Management) and Henri Fayol (General Management Principles) made significant contributions to the field of management, but their approaches differed in several key ways:
Focus:
*Taylor: Focused on shop floor level, optimizing individual tasks and worker efficiency.
*Fayol: Focused on the top management level, emphasizing overall administration and organizational structure.
Approach:
*Taylor: Emphasized scientific methods and experimentation to analyze and improve work processes.
*Fayol: Provided general principles and guidelines for effective management, based on his own experience.
Key principles:
Taylor:
*Science, not rule of thumb: Relying on data and analysis.
*Harmony, not discord: Cooperation between management and workers.
*Mental planning, not rule of thumb: Management planning work processes.
*Division of labor and specialization: Assigning tasks based on skills.
*Development of each person: Investing in worker training and well-being.
Fayol:
*Division of work: Creating specialized departments and roles.
*Authority and responsibility: Balancing authority with accountability.
*Discipline: Maintaining order and clarity in the organization.
*Unity of command: One supervisor per employee for clear direction.
*Subordination of individual interests: Prioritizing company goals over personal interests.
*Remuneration: Fair and motivating compensation for employees.
*Stability of tenure: Long-term employment for experience and loyalty.
*Initiative: Encouraging employee creativity and responsibility.
*Esprit de corps: Building team spirit and unity.
Impact:
*Taylor: Revolutionized industrial production through increased efficiency, but faced criticism for neglecting worker well-being and potentially causing monotony and fatigue.
*Fayol: Provided a broader framework for effective management and leadership, emphasizing human factors and organizational structure.
Overall:
*Taylor's scientific methods provided valuable tools for optimizing individual tasks and processes.
*Fayol's general principles offered a broader framework for effective management and leadership at the organizational level.
Both Taylor and Fayol, despite their differences, contributed significantly to the development of modern management practices. Their contrasting approaches offer valuable insights for various contexts and managerial challenges.
Additional considerations:
*Taylor's methods were more applicable to repetitive, manual tasks, while Fayol's principles provided broader guidance for diverse organizational settings.
*Modern management theories often integrate elements from both Taylor and Fayol, adapting their principles to the specific needs of organizations and the evolving nature of work.
5. Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.
Ans: While Taylor and Fayol’s work was groundbreaking in the early 20th century, their contributions remain relevant in today's contemporary business environment, albeit with some adaptations and considerations. Here's how:
Taylor's Scientific Management:
*Emphasis on efficiency and data-driven decision-making: This principle remains crucial in today's competitive landscape. Businesses constantly seek ways to streamline processes, reduce waste, and improve output. Taylor's focus on scientific analysis and experimentation provides a valuable framework for data-driven decision-making and continuous improvement.
*Standardization and specialization: While rigid Taylorism has limitations, the concept of standardization still holds value. Setting consistent procedures and protocols can ensure quality and reduce errors, particularly in repetitive tasks. Additionally, specialization continues to be a key factor in maximizing individual and team performance.
*Human resource development: Taylor's emphasis on training and development might seem contradictory to his focus on worker control, but investing in skills improvement remains relevant. Today, organizations recognize the importance of training and upskilling their workforce to adapt to technological advancements and changing market demands.
Fayol's General Management Principles:
*Division of work and organizational structure: This principle forms the foundation of modern organizations. Structuring departments and roles based on specialized functions allows for focused expertise, clear accountability, and efficient operations.
*Leadership and communication: Fayol's emphasis on clear lines of authority, effective communication, and employee empowerment resonates with modern leadership styles. Strong leadership and open communication are essential for fostering collaboration, engagement, and innovation within teams.
*Long-term perspective and employee well-being: While Fayol's focus on stability of tenure might not be universally applicable in today's dynamic workplaces, his call for a long-term perspective and consideration of employee well-being remains relevant. Building loyalty, motivation, and positive work environments are crucial for retaining talent and maximizing employee potential.
Limitations and Adaptations:
*Taylor's methods can be criticized for overlooking the human element and potentially leading to worker fatigue and demotivation. Today, organizations need to balance efficiency with employee well-being and work-life balance.
*Fayol's principles were developed through observation and experience, lacking a strong theoretical foundation. Modern management frameworks combine theoretical grounding with practical application, adapting to diverse organizational contexts and cultural needs.
Conclusion:
Taylor and Fayol's contributions laid the groundwork for modern management practices. While some of their specific methods might require adaptation in today's dynamic environment, their core principles of efficiency, data-driven decision-making, organizational structure, effective leadership, and employee well-being remain relevant and valuable for businesses striving for success in the contemporary business environment.
6. ‘Bhasin’ limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices. Also with more people working the market for processed food was increasing. New players were also coming to cash in on the new trend. In order to keepits market share in the short run the company directed its existing workforce to work overtime. But this resulted in many problems. Due to increased pressure of work the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working on one product were also made to work on two or more products. This resulted in a lot of overlapping and wastage. The workers were becoming indisciplined. The spirit of teamwork, which had characterized the company, previously was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the products was beginning to decline and market share was on the verge of decrease. Actually the company had implemented changes without creating the required infrastructure. a. Identify the Principles of Management (out of 14 given by Henry Fayol) that were being violated by the company.
b. Explain these principles in brief.
c. What steps should the company management take in relation to the above principles to restore the company to its past glory?
7. (Further information related to the above question 6) The management of company Bhasin Limited now realised its folly. In order to rectify the situation it appointed a management consultant -Mukti Consultants - to recommend a restructure plan to bring the company back on the rails. Mukti Consultants undertook a study of the production process at the plant of the company Bhasin Limited and recommended the following changes —
• The company should introduce scientific management with regard to production.
• Production Planning including routing, scheduling, dispatching and feedback should be implemented.
• In order to separate planning from operational management ’Functional foremanship’ should be introduced.
• ‘Work study’ should be undertaken to optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• To motivate the workers ‘Differential Piece Rate System’ should be implemented. (The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.) It was expected that the changes will bring about a radical transformation in the working of the company and it will regain its pristine glory.
a. Do you think that introduction of scientific management as recommended by M consultants will result in intended outcome?
b. What precautions should the company undertake to implement the changes?
c. Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem.
Question And Answer Type By: Himashree Bora.
